real estate firm faces two kinds of employees, those able to sell 10 houses/year, and those able to sell 5 units/year. High-productivity employees are willing to work for $100K/year while low-productivity employees are willing to work for only $50K/year.  Which compensation scheme would

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter21: Getting Employees To Work In The Firm’s Best Interests
Section: Chapter Questions
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A real estate firm faces two kinds of employees, those able to sell 10 houses/year, and those able to sell 5 units/year. High-productivity employees are willing to work for $100K/year while low-productivity employees are willing to work for only $50K/year.  Which compensation scheme would be able weed out low productivity workers the best?
 
 
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Offer a salary of $100K.
Offer a salary of $75K plus $5K/unit commission.
Offer a sales commission of $10K/unit.
Offer a sales commission of $20K a unit starting with 6th unit.
Offer a salary of $50K plus a sales comission of $10K per unit.
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